Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Scrapps who wrote (13338)	3/4/1998 6:02:00 PM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 22053

Hi Scrapps, how's life in the coma ward? <gg> Have you checked on the patient lately? What's the heart monitor say? <gg> Looks like the tech party is over for awhile. Just wish I had some extra money to go short some techs with. DK

To: Scrapps who wrote (13338)	3/4/1998 6:10:00 PM
From: Moonray	Respond to of 22053

What Intel said: Intel First Quarter to be Below Expectations; Lower than Anticipated Demand Impacting Results 04:16 p.m Mar 04, 1998 Eastern SANTA CLARA, Calif.--(BUSINESS WIRE)--March 4, 1998--Weaker than anticipated demand, particularly in OEM turns (orders from PC manufacturers to be shipped within the quarter), is expected to cause revenue and net income levels to fall below Intel's expectations for the first quarter of 1998, the company said today. When Intel announced fourth quarter earnings in January, the expectations were that revenue in the first quarter of 1998 would be approximately flat with fourth quarter revenue of $6.5 billion. The outlook for the first quarter has been revised from the view presented in the fourth quarter 1997 earnings report on Jan. 13, 1998. Business Outlook The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not reflect the potential impact of any mergers or acquisitions that may be completed after the date of this release, except as noted below. o The company expects revenue for the first quarter of 1998 to ...be down approximately 10 percent from the fourth quarter ...revenue of $6.5 billion. o Gross margin percentage in the first quarter of 1998 is now ...expected to be 53 percent, plus or minus a couple of points. ...The change from earlier guidance is due to the lower revenue ...expectation. In the short-term, Intel's gross margin ...percentage varies primarily with revenue levels and product ...mix. Expectations for Intel's gross margin for the full year ...1998 will be updated in the first quarter earnings report. ...Margin percentage will be 50 percent plus or minus a few ...points. Intel's long-term gross margin percentage will vary ...depending on product mix. o The company completed the merger of Chips and Technologies Inc. ...with Intel Enterprise Corp. during the quarter. The acquisit- ...ion is expected to result in a one-time non-deductible charge ...in the first quarter of approximately $165 million, or $0.09 ...per share. This includes a write-off of in-process R&D. o Expenses (R&D plus MG&A) in the first quarter of 1998 are ...expected to be approximately 3 percent higher than the ...expenses of $1.4 billion in the fourth quarter. In January, ...expectations were that expenses in the first quarter of 1998 ...would be approximately 2 to 5 percent lower than the fourth ...quarter. The increase from prior expectations is attribut- ...able to the one-time charge associated with the acquisition ...of Chips and Technologies Inc. Expenses are dependent in ...part on the level of revenue. o R&D spending is expected to be approximately $3.0 billion for ...1998, up from $2.3 billion in 1997. In January, expectations ...were that R&D spending in 1998 would be approximately $2.8 ...billion. The increase from prior expectations is primarily ...attributable to the one-time charge associated with the ...acquisition of Chips and Technologies Inc. Expenses are ...dependent in part on the level of revenue. o The company expects interest and other income for the first ...quarter of 1998 to be approximately $175 million assuming ...no significant changes in cash balances or interest rates, ...and no unanticipated items. o The tax rate in 1998 is expected to be 34.0 percent, excluding ...the impact of the one-time charge associated with the ...acquisition of Chips and Technologies Inc. o Capital spending for 1998 is expected to be approximately $5.3 ... billion, up from $4.5 billion in 1997. o Depreciation is expected to be approximately $2.7 billion for ...1998, up from $2.2 billion in 1997. Depreciation in the first ...quarter of 1998 is expected to be approximately $580 million. The above statements contained in this outlook are forward-looking statements that involve a number of risks and uncertainties. In addition to factors discussed above, among other factors that could cause actual results to differ materially are the following: business and economic conditions, and growth in the computing industry in various geographic regions; changes in customer order patterns, including changes in customer and channel inventory levels; changes in the mixes of microprocessor types and speeds, purchased components and other products; competitive factors, such as rival chip architectures and manufacturing technologies, competing software-compatible microprocessors, availability of other computing alternatives and acceptance of new products in specific market segments; pricing pressures; excess or obsolete inventory and variations in inventory valuation; timing of software industry product introductions; continued success in technological advances, including development and implementation of new processes and new strategic products for specific market segments; execution of the manufacturing ramp; excess or shortage of manufacturing capacity; the ability to successfully integrate and operate any acquired businesses; unanticipated costs or other adverse effects associated with processors and other products containing errata (deviations from published specifications); risks associated with foreign operations; litigation involving intellectual property, consumer and other issues; and other risk factors listed from time to time in the company's SEC reports, including but not limited to the report on Form 10-Q for the quarter ended Sept. 27, 1997 (Part I, Item 2, Outlook section). Intel's 1998 Step-Up Warrants (INTCW) expire on March 14, 1998. The warrants must be exercised on or before Friday, March 13, 1998. The last day of trading of the warrants on The Nasdaq Stock Market will be March 10, 1998. Copies of this press release can be obtained via the Internet at www.intc.com or by calling Intel's transfer agent, Harris Trust and Savings Bank, at 800/298-0146. Intel, the world's largest chip maker, is also a leading manufacturer of personal computer, networking, and communications products. Additional information is available at intel.com . (See also: businesswire.com) Copyright 1998, Business Wire o~~~ O

To: Scrapps who wrote (13338)	3/5/1998 7:49:00 AM
From: Moonray	Read Replies (2) \| Respond to of 22053

More: Intel hurt by weak demand, PC maker changes Wednesday March 4, 10:34 pm Eastern Time SAN FRANCISCO, March 4 (Reuters) - Intel Corp's unexpected warning that first quarter earnings will be below expectations is due to a combination of weaker PC demand, too much inventory and manufacturing changes at PC makers, analysts said. Some analysts also said that the explosion of interest in the sub-$1,000 PC may also finally be hurting Intel, because it had not yet addressed this market with a low-cost processor. ''It's surprising but it's not surprising,'' said Stephen Dube, a Wasserstein & Perella Securities analyst. ''The shift in manufacturing that all the channel players are making is having a significant impact on Intel.'' The top personal computer makers, notably Compaq Computer Corp (CPQ - news), International Business Machines Corp (IBM - news) and Hewlett-Packard Co (HWP - news) have all been manufacturing on a ''build-to-order'' basis and analysts said that they have also been getting rid of inventories. ''Everyone is trying to shrink their inventory so they can be more like Dell (Computer Corp (DELL - news)),'' Dube said, referring to Dell's phenomenal success as a direct seller of PCs. Analysts also said there was a lot of PC inventory in the reseller channel and PC makers are trying to get rid of the inventory by slashing prices and not buying so many new parts. On Monday, Compaq's chief financial officer Earl Mason cautioned investors at a Merrill Lynch technology conference that the business environment, particularly in North America, was tougher than expected, as competitors were cutting prices. He also said that the ongoing PC industry price war, which has mostly been fought in the consumer segment, is now moving to the relatively price-stable commercial sector. ''Clearly, they (Compaq) are not going to be double-ordering this quarter,'' said Rob Chaplinsky of Hambrecht & Quist. ''It's clearly related to Compaq. The sub-$1,000 PC phenomenon is hurting ASPs (average selling prices).'' Mark Edelstone, a Morgan Stanley analyst, said that Intel's earnings warning was a replay of the first quarter of 1996, when PC makers had a big buildup of inventory overhang that did not sell in the fourth quarter holiday shopping season. ''It's exacerbated by the move of the top OEMs (original equipment manufacturers) to build-to-order, which is trying to squeeze out inventory in general,'' Edelstone said. On top of that, he noted Intel is due to launch new products in April, including its Celeron chip for the sub-$1,000 market, so PC makers want to keep their inventory of processors very low. o~~~ O